TSX Pops on China News

WestJet, Callidus in Focus

Equity markets opened higher on Monday, with gains led by energy companies, as sentiment was buoyed by signs of an interest rate reform in China that raised hopes that major economies would act to counter slowing economic growth.

The S&P/TSX Composite began a new week up 67.97 points to 16,217.76, after a dreadful week before in which the index lost 200 points.

The Canadian dollar eked forward 0.01 cents to 75.38 cents U.S.

Papua New Guinea plans to take a larger share of the Porgera gold mine as part of lease-renewal talks, diluting the ownership of joint venture partners Barrick Gold Corp and Zijin Mining Group.

Barrick shares dipped 58 cents, or 2.4%, to $23.80.

Husky Energy said on Friday it will resume full production at its White Rose field off the coast of Newfoundland & Labrador, which was shut down last year after an oil spill in November 2018.

Husky shares acquired 27 cents, or 3.1%, to $9.04.

The Canadian Transportation Agency said on Friday it had launched an inquiry to determine if WestJet Airlines' tariffs related to schedule changes were "just and reasonable". WestJet gained three cents to $30.82.

Shares of Callidus Capital surged more than 75% on Friday after the Canadian lender said its second-largest shareholder, Braslyn Ltd, would acquire its outstanding minority shares and take it private.

Callidus shares stood pat in Monday’s first hour at 72 cents.

Credit Suisse raised the rating on Canadian Utilities to outperform from neutral. Canadian Utilities jumped 74 cents, or 2%, to $37.06.

CIBC raised the rating on Extendicare to outperform from neutral. Extendicare shares gained 15 cents, or 1.8%, to $8.68.

Credit Suisse raised the rating on Hydro One to outperform from neutral. Hydro One ignited 24 cents, or 1%, to $24.18.

ON BAYSTREET

The TSX Venture Exchange took on 0.93 points to begin Monday at 571.36, after being roughed up 22 points last week.

All but three of 12 Toronto subgroups gained ground in the first hour, with energy proceeding upward 1.1%, while consumer discretionary and industrials each ahead 1%.

The three laggards were gold, down 2.1%, health-care, sliding 1.3%, and materials off 1%.

ON WALLSTREET

Stocks rose sharply on Monday as Treasury yields rebounded, quelling fears of a possible recession. Equities also got a boost after the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei.

The Dow Jones Industrials popped 209.79 points to rebound to 26.095.80, led by Nike and Goldman Sachs.

The S&P 500 gained 27.78 points, or 1%, to 2,916.63, as the energy and tech sectors outperformed.

The NASDAQ jumped 84.94 points, or 1.1%, to 7,980.93

These gains add to a rebound that started last week after the Dow posted its worst session of 2019. The 30-stock index plummeted 800 points, or 3.1% on Wednesday before regaining some of the lost ground on Thursday and Friday. The S&P 500 is still down 2.1% in August and off more than 3% from a recent record.

Bond yields moved up (see below), and bank shares rose along with them. Bank of America traded 0.9% higher along with J.P. Morgan Chase. Citigroup climbed 1.3%.

The Wall Street Journal and Reuters reported the Commerce Department was preparing to extend a license for 90 days, which will allow Huawei to continue business with the U.S. companies to service existing customers. The current agreement is set to end on Monday.

Shares of chip makers rose on the reports. On Semiconductor picked up 3.6%, and AMD gained 1.2%, respectively. Micron Technology rose 2.1%.

Apple also advanced 2.5%, after CEO Tim Cook spoke with President Trump on Sunday, who said Cook made a “good case” that it would be hard for Apple to pay tariffs, when Samsung does not face the same level of duties given its manufacturing in South Korea.

Prices for the benchmark 10-year U.S. Treasury tumbled, lifting yields to 1.6% from Friday’s 1.56%. Treasury prices and yields move in opposite directions

Oil prices acquired 73 cents to $55.60 U.S. a barrel.

Gold prices faltered $15.80 to $1,507.800 U.S. an ounce.